In Switzerland, one third of carbon emissions comes from the use of fossil fuels in the transport sector. Distributors of fossil fuels must comply with the CO2 Act, which requires them to fund projects to offset part of the emissions generated when these fuels are burnt. The proportion of emissions they are required to offset will increase to 50% by 2030. The amount of offsetting permitted abroad will also rise. Distributors must acquire attestations from offsetting projects to prove that they are meeting their offsetting obligation. These attestations are approved by the Compensation Office.
Distributors of fossil fuels (petrol, diesel, natural gas and kerosene) are subject to the offsetting obligation as soon as the carbon emissions generated by burning the amount of fuel they place on the market exceeds a threshold value of 10,000 tonnes per year. If this limit is exceeded, the distributor must offset the emissions in the following three years, regardless of whether their emissions in these years fall below the threshold value.
Continuous rise in offsetting rate
The offsetting rate (proportion of carbon emissions from the use of imported fuels to be offset) will increase each year to 2030, as set out in the CO2 Ordinance.
The aggregated rates (for projects in Switzerland and abroad) are as follows:
- 25% in 2025
- 30% in 2026
- 35% in 2027
- 40% in 2028
- 45% in 2029
- 50% in 2030
Since 2022, companies have been able to offset emissions with projects abroad, but at least 12% must be offset in Switzerland. This means that a maximum of 13% may be offset abroad in 2025, 18% in 2026, etc.
Meeting the offsetting obligation
The FOEN and SFOE jointly run the Compensation Office, the contact point for applicants, validators and verifiers, and entities subject to the offsetting obligation.
Entities subject to the offsetting obligation purchase attestations from offsetting project applicants. In return, they may pass on a maximum of 5 cents per litre of fuel to customers. Attestations are processed via the Swiss Emissions Trading Registry, the platform on which the FOEN monitors the offsetting obligation. The Compensation Office issues the attestations to the applicants. The applicants sell them to the offsetting entities, who in turn submit them to the FOEN, thereby fulfilling their offsetting obligation.
The offsetting obligation has existed since 2013. Projects abroad have also been eligible for approval since 2022.
If a company does not meet its offsetting obligation, it must pay a fine of CHF 160 per tonne of carbon and submit additional attestations in the following year.
Emission pools
Entities subject to the offsetting obligation may join together to form emission pools that meet the offsetting obligation on their behalf.
Currently there is just one such pool, the Foundation for Climate Protection and Offset (KliK).
Further information
Links
Foundation for Climate Protection and Carbon Offset (KliK)
Cross-sector carbon offset grouping for motor fuels
Law
Compensation of CO2 Emissions from Motor Fuels
Newsletter
Last modification 25.09.2025
